EOG Resources Stock Should Rise on Earnings Announcement

The options market is mispricing EOG Resources ahead of earnings, according to Goldman Sachs.

The bank's derivatives strategists recommended that clients buy EOG's (ticker: EOG) May $100 calls, which cost $2.91 when the stock was at $99.62, to position for the shares to rally. The company is scheduled to report first-quarter earnings May 6. The stock has since declined to $97.82, and the call price has dropped to $2.43. Shares are...